Equity markets open in green as Moody’s elevates India's rating to Baa2

The higher rating by Moody’s has given investors a reason to cheer as markets opened in green on Friday.

The Indian Rupee also opened strong against the US dollar on Friday at Rs 64.72 per dollar. Image Source: Zeebiz

Key Highlights

Analysts estimate Sensex may touch 34,000 mark.

Nifty 50 was up over 100 points in early trade.

Moody’s raised India’s ranking to Baa2 from Baa3.

Indian equity markets cheered after ratings agency, Moody’s elevated India’s rating on Friday.

BSE Sensex climbed over 280 points to open at 33,388.47 points while the bigger 50 scrip Nifty was up 100 points in early trade.

The SGX Nifty 50 Index futures for November delivery climbed 0.8% to 10,344.00 as Moody’s raised India’s sovereign bond rating to Baa2 from Baa3, citing continued progress in the nation’s economic and institutional reforms.

Moody’s rating also cited the rollout of the Goods and Services Tax (GST) that was implemented from July 1 this year. Moody's said the recently-introduced goods and services tax (GST), a landmark reform that turned India`s 29 states into a single customs union for the first time, will promote productivity by removing barriers to interstate trade.

The Indian Rupee also opened strong against the US dollar on Friday at Rs 64.72 per dollar.

Gainers in early trade on BSE Sensex were Religare that climbed over 5% to Rs 53.35 per share. JustDial that also inched up 4% to Rs 547.40 per share, PNB (up 4.28%) to Rs 197.55 per share.

RattanIndia Power Ltd and Indian Overseas Bank were up over 3% in early trade sessions on BSE Sensex.

Asian stocks also opened higher on Friday, after an unbridled week.

The MSCI AC Asia Pacific Index advanced 0.6% while Japan’s Nikkei gained 0.9%, extending its recovery from a near three-week intraday low hit the previous day, a report by Reuters said.

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